America Online Lays Off 300

Updated Dec. 11, 2002 3:36 p.m. ET

America Online, AOL Time Warner Inc.'s popular but troubled Internet-services unit, laid off 300 employees Wednesday, a person close to the company said. The cuts, which were spread across company functions, mostly affected America Online's Northern Virginia and California offices. America Online declined to comment. According to the person, the layoffs are part of America Online's plan to remake itself, which was described to investors last week. That plan includes investing in priority areas, such as improving basic services and promoting premium services, broadband access and e-commerce. But it also includes cost...